The Chinese stock market entered a bear market this week (-20% since January) and the yuan is down 5.5% versus the greenback since February. A burgeoning trade war with the US is adding pressure, but the story here is not just about China. It’s about slowing global cash flows and strain building in leveraged emerging economies who borrowed heavily over the past few years, particularly in US dollars. Typically these pressures are not ‘contained’ but spread from credit to equity markets, emerging and developed. This Bloomberg radio discussion is on point.
Bloomberg Markets AM with Pimm Fox and Lisa Abramowicz speak with Brendan Brown, Chief Economist and Head of Economic Research at MUFG Securities, on what EM is signalling, central banks and currency manipulation.
Running time 06:15
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